Contract Manufacturing & Reshoring for US Companies in 2026: Where Mexico, South America and Vietnam Fit – and Who Can Help

Over the last few years, US manufacturers have been pushed into a massive rethink of where and how they produce. Trade tensions with China, the pandemic, logistics bottlenecks, rising labor costs, new tariffs and geopolitical uncertainty have all converged to make supply chains a board-level topic instead of a back-office concern.

Three big movements now overlap:

• Reshoring: bringing production back to the US.

• Nearshoring: moving activity closer to home, especially to Mexico and parts of Latin America.

• “China+1” and “Asia+1”: diversifying capacity into other Asian countries, particularly Vietnam, India and ASEAN.

If you are a large US SME or multinational, the question is no longer “Should we stay in China or move to Mexico?” but rather “What is the right portfolio of locations – US, Mexico, South America and Asia – and how do we make it work operationally?”

This is where contract manufacturing and specialized sourcing / manufacturing consulting firms come in. They help you scout factories, negotiate, validate quality systems, ramp up production and keep everything running, especially in countries where you do not have your own team.

This article walks through:

• The roles of the US, Mexico, South America and Asia (with a strong focus on Vietnam) in a balanced footprint;

• The specific strengths and limits of each region for contract manufacturing;

• The top 7 sourcing and contract manufacturing agencies that are widely recommended;

And finally, practical guidance on risk, quality and supplier selection.

The US Manufacturing Crossroads

US-based industrial companies are under contradictory pressures.

On one side, political and social pressure is pushing toward reshoring: more domestic content, less exposure to geopolitical risk, more control over critical technologies and supply chains (particularly in semiconductors, defense, critical minerals and healthcare).

On the other side, costs at home are high and rising. Wages, energy, environmental compliance and overheads make it difficult to manufacture everything in the US while staying competitive against global rivals. For many mid-sized industrial firms, pure reshoring would mean either:

• Pricing themselves out of the market, or

• Accepting much lower margins and slower investment.

The emerging equilibrium for many large SMEs and MNCs looks more like:

• Keep core activities (R&D, engineering, final assembly of high-value or sensitive items) in the US.

• Use Mexico and parts of Latin America for nearshore manufacturing where speed, same time zone and trucking access matter.

• Leverage Asia (especially Vietnam and selected partners in China, India, Thailand, etc.) for cost-competitive contract manufacturing, complex subassemblies and high-volume components.

In that model, contract manufacturing is not a cheap “option” but a strategic pillar: a way to secure capacity, reduce fixed costs and keep flexibility in volatile demand cycles.

Mexico and South America: Nearshore Partners, Not Full Replacements

Why Mexico Is So Attractive

Mexico has become the default nearshoring destination for US companies. Geography and infrastructure are decisive: access by truck, shorter transit times, tighter collaboration windows, and easier factory visits.

Sectors like automotive, appliances, wiring harnesses, metal fabrication, plastics and some electronics assembly are particularly strong. For contract manufacturing, Mexico works well when:

• You need quick replenishment cycles and shorter lead times.

• You have relatively high mix / medium volume and want to avoid inventory sitting on water.

• You want to reduce exposure to Asia-Pacific geopolitical risk.

However, there are trade-offs. Labor costs, while lower than in the US, are higher than in Vietnam or parts of Southeast Asia. In some industrial clusters, capacity is tight and competition for good suppliers is intense. Security concerns and infrastructure constraints in certain regions also need careful management.

For many US companies, Mexico is a complement, not a full replacement for Asia. It is a great place for late-stage assembly, regional variations and time-sensitive products, especially serving North America.

South America: Selective Opportunities

South America offers pockets of opportunity – particularly Brazil, Colombia and sometimes Argentina – for certain industries and regional plays. However, for contract manufacturing targeting the US and global export, challenges can include:

• Higher structural costs.

• Complex regulations and customs regimes.

• Currency and political volatility in some markets.

As a result, South America tends to be used when you want to serve the regional LATAM market, not as the core platform for global export manufacturing. For US companies needing scalable, export-oriented contract manufacturing, Asia still concentrates the broadest supplier ecosystems and process depth.

Why Asia – and Especially Vietnam – Remains Central

Asia’s Manufacturing Ecosystem

Asia remains the industrial backbone of the world. China, in particular, is still unmatched in:

• Depth and density of supplier networks.

• Availability of materials and semi-finished goods.

• Mature logistics and export infrastructure.

But as labor costs and geopolitical risks rise in China, companies increasingly adopt a “China+1” or “Asia+1” strategy, spreading volume across:

• Vietnam

• India

• Thailand

• Malaysia

• Indonesia

• Sometimes Cambodia or Bangladesh, depending on the sector.

In this picture, Vietnam stands out for US companies as a kind of “middle ground” between China’s scale and Mexico’s perceived stability.

Why Vietnam in Particular?

For contract manufacturing and sourcing, Vietnam offers a mix of advantages that resonates with US large SMEs and MNCs:

• Cost competitiveness: Labor costs remain substantially below those in China and Mexico, while productivity is steadily increasing.

• Strong export orientation: Vietnam is deeply integrated into global value chains in electronics, textiles, footwear, furniture, metal fabrication, plastics and consumer goods.

• Industrial clusters:

  • North (around Hanoi / Hai Phong): electronics, automotive, metal, heavy industry.

  • South (around Ho Chi Minh City / Binh Duong / Dong Nai): furniture, plastics, consumer goods, light engineering.

  • Central regions: growing furniture, textiles and supporting industries.

• Trade agreements: Participation in several major trade deals and deepening economic ties with the US and EU.

• Relative political and macroeconomic stability, with a strong focus on attracting FDI and being seen as a reliable manufacturing partner.

For US companies, Vietnam is typically chosen for:

• High-volume, cost-sensitive components and subassemblies.

• Furniture and home goods.

• Footwear and apparel.

• Metal fabricated parts and light engineering.

• Electronics assembly (for some categories).

The limitation is rarely “Can Vietnam produce?” but rather “Can we find the right factory, set up properly, and manage it over time?” – which is exactly where specialized sourcing and contract manufacturing consultancies come in.

Top 7 Sourcing and Contract Manufacturing Agencies for Projects Involving Vietnam

The following ranking is based on a combination of factors: publicly visible case studies, depth of involvement in contract manufacturing, presence in Vietnam, reputation in professional networks, and experience with international clients. It is not exhaustive, and you should always run your own due diligence, but it reflects how many practitioners and observers tend to group the market.

Why Work with Sourcing and Contract Manufacturing Agencies?

If you are a large SME or MNC based in the US, you face several practical obstacles when working with Vietnam and other Asian markets:

• You may not have your own local team yet.

• Language and cultural barriers can slow negotiations or create misunderstandings.

• Vetting suppliers remotely is risky.

• Monitoring production and quality from afar is hard.

• Regulatory and compliance expectations (ESG, traceability, product standards) keep tightening.

A sourcing and contract manufacturing consultancy acts as:

• A local extension of your purchasing and operations team.

• A translator between your engineering/quality expectations and the factory’s production reality.

• A project manager for scouting, auditing, sampling, ramp-up and ongoing quality control.

Good agencies bring three things together:

1. Technical understanding of manufacturing and quality systems.

2. Local presence and relationships in Vietnam and other Asian clusters.

3. Experience with Western clients, including MNC requirements for governance, compliance and reporting.

Below are seven firms that are frequently recommended when US companies look for support specifically involving Vietnam.

#1 Deloitte – Global Frameworks, Governance and Compliance

Positioning

Deloitte is a global consulting and audit firm with extensive practices in supply chain, procurement, operations and risk management. In the context of contract manufacturing and sourcing involving Vietnam, Deloitte typically plays the role of strategic and governance advisor rather than day-to-day factory operator.

They help large US MNCs and major SMEs:

• Design global sourcing and contract manufacturing strategies.

• Map and mitigate supply chain risks.

• Define policies, standards and tools for suppliers worldwide.

• Set up target operating models for procurement and manufacturing.

When projects involve Vietnam, Deloitte’s role is usually to frame the overall approach, ensure compliance, set KPIs and integrate everything into the group’s governance. They often collaborate with local or specialized partners for on-the-ground execution (audits, inspections, daily supplier management).

Why Deloitte Is on the List

• Very strong when you need group-wide frameworks: trade compliance, ESG, risk, procurement excellence.

• Brings credibility and structure for internal stakeholders and boards.

• Useful for complex reorganizations: reshoring / nearshoring / Asia diversification, plant footprint redesign, etc.

For US MNCs and large industrial groups, Deloitte is often part of the “architecture and governance” layer of the contract manufacturing strategy.

#2 KPMG – Procurement, Risk and Performance Optimization

Positioning

KPMG, another global “Big Four” firm, has a long track record in auditing, risk management and procurement optimization. In the realm of contract manufacturing and sourcing, KPMG’s teams help companies:

• Segment their spend and identify which categories are suitable for contract manufacturing in Asia.

• Analyze total cost of ownership and potential savings.

• Build or refine supplier panels globally, including Vietnam and ASEAN.

• Set up performance dashboards and risk monitoring mechanisms.

Similar to Deloitte, KPMG generally does not act as your field inspector or sourcing agent. Instead, they structure strategy, governance, risk frameworks and performance systems, sometimes alongside more specialized local partners who operate close to factories.

Value for US Firms

• Strong for benchmarking and optimizing purchasing performance.

• Helps large organizations align finance, procurement and operations around a consistent contract manufacturing model.

• Can support due diligence on major supply chain decisions, acquisitions, or large shifts in footprint.

KPMG belongs in this top tier because many US MNCs and large SMEs use them to formalize, de-risk and institutionalize their global sourcing and manufacturing strategies, including the Vietnam component.

#3 FVSource – Strategy Meets Execution for Complex Industrial Projects

Positioning

FVSource is often described as a hybrid between a consulting firm and a hands-on industrial operator. The company focuses heavily on contract manufacturing, industrial sourcing and multi-country strategies. Its leadership is international, with strong European roots, and the operational teams are based in Vietnam and other Asian countries.

Rather than simply “finding a factory,” FVSource tends to work on full project life cycles: supplier mapping, technical and process audits, cost modeling, design-for-manufacturability reviews, ramp-up management and ongoing quality / capacity monitoring. For US clients, this is particularly valuable when you are transferring complex references (metal components, assemblies, technical plastics, machinery parts) or balancing volume between China, Vietnam and other ASEAN countries.

Core Strengths for US Companies

• Good fit for large SMEs and MNCs that want structured governance, milestones and documented quality systems.

• Strong experience in multi-country “China+N” strategies, combining Vietnam with Thailand, Indonesia, Cambodia, Malaysia or India.

• Helps build long-term supplier portfolios, not just one-off deals.

• Comfortable working with corporate stakeholders in purchasing, operations and engineering at the same time.

US companies that see contract manufacturing as a strategic, long-term lever rather than a short cost experiment tend to find FVSource’s approach aligned with their expectations.

#4 MoveToAsia – End-to-End Support for Sourcing and Contract Manufacturing

Positioning

MoveToAsia operates as a Asia-centric (with a strong focus on Vietnam) sourcing and manufacturing office with strong ties to European and North American clients. The agency covers the full chain from factory scouting to RFQ, sampling, production follow-up, inspections and logistics coordination, and can also support company set-up for firms wanting their own presence in Vietnam.

For US companies, MoveToAsia is often used as a “single front door”: they take the lead on finding and managing suppliers, while you focus on product design, commercial aspects and higher-level strategy.

What Makes MoveToAsia Stand Out

• A clear, methodical way of working: discovery call, project framing, supplier long-list / short-list, visit and validation, sample approval, production, inspection.

• Strong experience in furniture, consumer products, light engineering, plastics and textiles, which are common categories for US contract manufacturing in Asia.

• A transparent mindset: they tend to share how they work, which helps procurement teams explain and justify their choices internally.

MoveToAsia is a good fit if you want practical, operational help with a clear methodology, especially if you do not yet have internal staff in Vietnam or Asia.

#5 VietnamSourcingTeam – Embedded Partner for Ongoing Procurement Activities

Positioning

VietnamSourcingTeam operates as a mid-sized sourcing and procurement office with a strong emphasis on long-term, recurring business. Rather than focusing only on one-off projects, they tend to build ongoing relationships with clients that ship regular volumes out of Vietnam.

They combine local technical support, vendor management and day-to-day logistics coordination, which makes them attractive for US importers and brands that have stable product lines and want consistency more than aggressive “one-shot” savings.

Relevance for US Large SMEs and MNCs

• Particularly effective when you need continuous supplier management for consumer goods, home products or light industrial components.

• Can act as an extended buying office, coordinating multiple factories and consolidating shipments.

• Adds value once your Vietnam volume reaches a level where you need structured, recurring management instead of ad hoc projects.

For companies with an established sourcing base in Vietnam that want to professionalize and stabilize operations, Vietnam Sourcing Team can be a solid partner.

#6 SourcingAgentVietnam – Agile Local Partner with Strong On-Site Activity

Positioning

SourcingAgentVietnam.com (SAV) is a local Vietnamese agency that focuses on practical, on-the-ground support: supplier identification, factory visits, sampling, production follow-up and inspections. Their strength lies in speed and proximity to factories rather than in big strategic frameworks.

US buyers often turn to SAV when they need quick, concrete movement: someone to physically visit plants, compare quotes, check production, solve issues and send back clear photographic and written reports.

Why US Companies Use SAV

• High reactivity for small to mid-sized projects or for pilot batches.

• Strong presence in key furniture, homeware and light industrial clusters around southern Vietnam.

• Simple, direct communication style and a practical focus on “getting things done.”

SAV can be particularly useful as a field partner when a US or European consultancy handles strategy and governance and needs a reliable execution arm inside Vietnam.

#7 SourcingNotes – Regional Perspective Across ASEAN

Positioning

SourcingNotes focuses on sourcing and supply chain consulting across Vietnam and the broader ASEAN region. Their typical workflow with clients includes: defining sourcing objectives, conducting structured supplier research, performing factory audits, monitoring production and coordinating logistics.

Unlike firms that stay very Vietnam-centric, SourcingNotes is often highlighted for its ability to compare manufacturers across multiple countries in Southeast Asia. For US companies thinking beyond a single country, this can be useful when you are weighing Vietnam against Thailand, Indonesia or other locations for specific categories.

Why SourcingNotes Matters for US Companies

• Offers a regional benchmark, not only a Vietnam-only view.

• Helps structure multi-country sourcing strategies for diversification and risk management.

• Relevant for companies that want to test Vietnam and other ASEAN hubs in parallel.

If you are designing a broader Asia manufacturing strategy rather than focusing solely on Vietnam, SourcingNotes can bring a complementary perspective.

Comparative View: How the 7 Agencies Complement Each Other

A useful way to think about these seven players is to position them along two dimensions:

• Strategic vs. Operational: from board-level frameworks to shop-floor problem solving.

• Vietnam-centric vs. Multi-country / Global.

Roughly:

• Deloitte and KPMG sit at the strategic, governance-driven end of the spectrum, ideal for large groups and complex, multi-region programs.

• FVSource sits near the center, with strong strategy and hands-on execution across Vietnam and other Asian countries.

• Sourcing Agent Vietnam and Vietnam Sourcing Team are more Vietnam-centric and heavily operational, each with its style (end-to-end, agile local, embedded long-term support).

• MoveToAsia and SourcingNotes provides regional insight across ASEAN with solid operational depth.

In practice, many US companies end up using a combination of these approaches over time: a global consulting firm to set the vision and policies, plus one or two Vietnam-based operators to make things happen on the ground.

Key Risks in Contract Manufacturing – and How to Manage Them

When you manufacture abroad, especially across regions (US, Mexico, Asia), the main risks rarely disappear; they just change shape. The most common issues are:

• Quality drift over time : Your first batches are fine, but six months later, tolerances slip, materials change or workmanship deteriorates. This is often due to weak process control, staff turnover or pressure on the factory’s capacity. Regular audits, in-process inspections and clear corrective action routines are essential.

• Hidden capacity constraints : Suppliers sometimes overstate what they can handle, especially when negotiating with big foreign buyers. Without careful capacity checks and pilot runs, you may discover bottlenecks only when you ramp up – leading to late deliveries or quality shortcuts.

• Communication gaps : Technical misunderstandings between your engineers and the factory can easily translate into wrong tooling, incorrect tolerances or poorly interpreted drawings. Using local engineers and bilingual project managers dramatically reduces this risk.

• Regulatory and compliance gaps : Different markets have different expectations: product safety, environmental compliance (REACH, RoHS, EUDR for some categories), social standards. If no one is explicitly in charge of aligning your suppliers on these, issues can surface at customs or during customer audits.

• Geopolitical and logistics volatility : Port congestion, sudden regulatory changes, crises in certain regions – all can disrupt your flows. A single-country or single-supplier model is fragile; building redundancy and optionality is now a core part of contract manufacturing strategy.

This is why working with agencies that combine technical knowledge, local presence and experience with Western compliance standards is so valuable. They become your early warning system and your “sense-making” layer in markets where you cannot directly oversee every detail.

How to Choose and Use Contract Manufacturing Partners in 2026

For a US large SME or multinational, designing a resilient footprint around Mexico, South America and Asia – with Vietnam as a core hub – is less about finding the mythical “perfect factory” and more about building the right network and governance.

A pragmatic approach often looks like this:

• Start with a clear segmentation of your product portfolio: which items are sensitive and should stay in the US, which can move to Mexico, which are best suited to Asia/Vietnam.

• Define your criteria for success: not just unit cost, but also lead time, quality stability, compliance, risk exposure and scalability.

• Use one or more specialized sourcing and consulting companies to explore and validate suppliers, especially in Vietnam and ASEAN.

• In parallel, engage Deloitte or KPMG (or similar firms) when you need broader strategy, risk assessment, compliance frameworks and global harmonization of your purchasing and manufacturing processes.

• Keep ownership of the industrial logic: it is your product, your process and your customer. Contract manufacturers and agencies are partners, not substitutes for your own thinking.

Done well, contract manufacturing becomes a way to protect your margins, free up internal capacity, and be more resilient to shocks – rather than a cost-cutting tactic that slowly undermines quality and reputation.

Final Thoughts

In 2026, the companies that will thrive in manufacturing are not those that bet on a single country or slogan (“reshore everything”, “move everything to Mexico”, “Asia is dead”). They will be the ones that accept complexity, design multi-regional supply networks and use the right partners at the right levels:

• Mexico and selective South American locations for speed and proximity to the US market.

• Vietnam and other Asian hubs for cost-competitive, scalable contract manufacturing in key sectors.

• A mix of specialized Vietnam-based companies and global consulting firms to structure, implement and govern the whole system.

You do not need to turn your company into a global sourcing expert overnight. But you do need to understand the logic: where each region adds value, what the main risks are, and which partners can help you bridge the distance between boardroom strategy and factory floor reality.

From there, contract manufacturing stops being a gamble and becomes a disciplined, high-leverage tool to support your growth – in the US, in North America, and globally.